A picture shows the screen of a computer showing a web site of downloading contents. (AFP Photo/Caroline Ventezou) / AFP

Online piracy is not the scourge of the media industry, as proponents of a crackdown on copyright infringement claim, says a new study. Creative business is doing well, with those embracing the new realities of digital sharing even flourishing.

The study by the London School of Economics
says that claims by industry lobbyists of damage from piracy are
largely exaggerated. Meanwhile, policies aimed at curbing illegal
file sharing that that the likes of the British Phonographic
Industry (BPI) and the British Video Association are neither
efficient nor help the entertainment industry to boost its bottom
line.

The policy report suggests that attempts to stop digital sharing
and close sites like The Pirate Bay are going against the natural
development of creative communities and advise to review UK’s
attitude to copyright.

"Neither the creative industry nor governments can put a stop to
cultural change that is global and in many cases welcomed,
including by other segments of industry," said LSE's Professor
Robin Mansell, co-author of the report.

"There is a need to foster recognition and economic reward for
creators and there is a need for copyright legislation to
underpin economic growth," Mansell added. "But such
legislation needs to be consistent with 21st-century values and
practices."

Even the champions of the copyright crusade like music records
and film producers don’t suffer as much as they claimed, the
study showed. Overall the music industry revenue in 2011 was $60
billion, while in 2012 in showed growth for the first time since
1999. About a third of the money that year came from digital
channels.

"Contrary to the industry claims, the music industry is not in
terminal decline but still holding ground and showing healthy
profits," said study co-author Bart Cammaerts, senior
lecturer in the LSE Department of Media and Communications.
"Revenues from digital sales, subscription services, streaming
and live performances compensate for the decline in revenues from
the sale of CDs or records."

Filmmakers have even less to complain about. The decline in sales
and rentals of DVDs was more than compensated by digital
distribution.

Book publishers see the loss of print sales, but enjoy the rise
in e-book sales.

“The rate of growth is not declining despite reports lamenting
the ‘end of the book’,” the report says. In 2013, the global
book publishing industry was worth $102 billion, more than any of
the other entertainment industries.

And the gaming industry is working “working with the online
participatory culture, rather than against it,” and was quite
successful in finding new income streams. It is projected to grow
at 6.5 percent and reach total revenues of US$87 billion in 2017,
up from $63 billion in 2012, the report says.

The notion of exclusive ownership, which copyright proponents are
defending, is outdated and not universally needed by the
creators, authors argue.

"Insisting that people will only produce creative works when
they can claim exclusive ownership rights ignores the spread of
practices that depend on sharing and co-creation and easy access
to creative works; this insistence privileges copyright owners
over these creators," the report notes.

It cites the popularity of phenomena like the Creative Commons
licenses, which are used by many artists to share their works
with the public, and the trend by musicians to release their
songs for free downloading.

The report advises against the implementation of UK’s Digital
Economy Act, which is to come into force in 2015. The legislation
would target websites involved in copyright infringement and
individual pirates. A similar approach in France was criticized
as waste of money, while no evidence was found that it helped
generate revenues for copyright owners, the authors note.

"Evidence-based legislation on copyright enforcement is needed
that independently assesses the claims of the dominant creative
industry firms and the impacts on users in the light of today's
digital culture," the report concludes.